Enforcement of stricter self-employment rules struggling to get off the ground

The Dutch government is beginning to enforce rules against "schijnzelfstandigheid," or false self-employment, but faces significant issues addressing the problem within its own ranks. Despite the Belastingdienst (Tax Authority) starting enforcement measures this month, government ministries are unable to provide clear data on the scope of the issue.

BNR, a Dutch broadcaster, asked the largest ministries how many freelance workers they employed who could be considered misclassified as self-employed. None of the ministries were able to provide an answer.

“We hope to complete an inventory of the number of misclassified freelancers by the end of the first quarter,” said officials from multiple ministries. This timeline is far behind schedule, as enforcement measures by the Belastingdienst began earlier this month.

Cristel van de Ven, president of the Vereniging Zelfstandigen Nederland (VZN), criticized the government for its lack of preparation. “It’s disgraceful behavior,” she said. The Ministry of Finance even announced earlier in January that it would cover any fines imposed on subcontractors due to violations, raising questions about the government's commitment to compliance.

“The poor handling of this issue within the government shows how difficult it is to address false self-employment,” Van de Ven added. “It’s a futile effort.”

Ireen Boon, an advisor with Trias Politica Advies, echoed these concerns. “The government is applying double standards. If the government doesn’t follow its own rules, who will?” she said, noting that this undermines public trust.

Approaches to resolving the issue vary among ministries. Some aim to terminate contracts with misclassified freelancers as quickly as possible, offering permanent positions where feasible. Others, such as the Ministry of Infrastructure and Water Management, are awaiting the results of their internal reviews before taking action.

Despite the leniency on penalties this year, the Belastingdienst has stated that warnings and retroactive tax assessments will be issued. “Government ministries will be treated like any other organization,” a spokesperson for the Ministry of Finance said, emphasizing that tax inspectors will independently determine which cases to investigate.

The stricter enforcement has already had a noticeable impact on businesses. According to the Chamber of Commerce, the number of freelancers declined in December for the first time in years. The trend is attributed in part to increased caution from companies over potential misclassification risks.

Boon noted that the government is now experiencing the same challenges imposed on businesses and freelancers by its own regulations. “This holds up a mirror to the ministries,” she said.